Globalization: Cause And Effects

Javier Sossa

Mr. Copeland

Writing Skills II

29 November 2011

Globalization: Cause and Effects

The idea of globalization confuses many because it takes place in the global society. It is important to realize that the change in the mentality of every society can be seen in the field of politics; communist or socialist regimes are the exceptions who are guided by a desire social policy to give way to another system or mode of development. This mode of development is called the global market system. The leaders of these regimes are almost entirely to blame for the extreme changes within each nation. Considering the market on a global stage, globalization covers a much wider and complex spectrum than on an economic scale then downsizes to a social, political and then cultural scale.

The globalization process allows for the improvement of market access through the movement of information that had been previously fragmented. Large companies want to fragment the production processes because it lessens what they spend on a product or manual labor, ensures that the best trained individuals are working on their product, and spreads out their own business. Throughout this production process, communication systems are vitally important because it reduces communication errors throughout different geographical regions. Individual economies that were previously excluded from international production networks are actively participate in globalization. The nations that make up Latin America, who was also a previously excluded from globalization, have very attractive economies and territories that can be used to stop the fragmentation production processes. Latin American countries are a continual source of raw materials and labor because they offer a lower cost than materials and labor services offered by developed countries (Gwynne 12).

Another great advantage to globalization has been the proliferation of foreign direct investment by developing countries that were previously excluded from the production process. It is necessary to ensure that the developing country is in an appropriate receiving state and is provided macroeconomic stability. These countries are then provided with adequate infrastructure, available labor, and access to the actual investment; all of which implies a great challenge for Latin America and an opportunity for development (Gwynne 14).

Through competition in the free markets and the global market has boosted competition by improving its processes, products, and product quality. More importantly, competition in the markets has not only improved the product, but it has also reduced the cost. Competition has a good effect on the market for many different reason, but it also promotes and rewards the effort to achieve the best results without increasing the cost. To achieve greater competitiveness It is the phenomenon of new business and corporate partnerships to increase the competition which is killing the old monopolies and oligopolies.

It is a reality the fact that Latin America faces in the context of globalization challenges. not only about their economic future,

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